Hyundai and Shell Base Oil Co begins South Korea production

HYUNDAI and SHELL Base Oil Co., Ltd. a joint venture company formed by Shell and Hyundai Oilbank, has inaugurated a new base oil manufacturing plant in Daesan, South Korea. The plant has the capacity to produce approximately 13 000 bpd or 650 kilotonnes of API Group II base oils per year.

Mark Gainsborough, Executive Vice President for Shell Lubricants, said: “As the demand for higher quality lubricants is on the rise in Asia, the region is shifting away from Group I base oils towards increased use of Group II and Group III base oils. This plant contributes significant Group II base oil supply to Shell’s supply chain in the region, helping us grow our premium lubricants business in Asia, especially in China and Northeast Asia.”

This is the fourth base oil production plant for Shell in the region, after Pulau Bukom in Singapore, Kaohsiung in Taiwan and Yokkaichi in Japan (a joint venture). Shell base oil production plants in Asia work alongside Shell’s network of 19 blending plants in the region, to deliver high quality Shell finished lubricants. Shell has blending plants in China, Singapore, Thailand, Malaysia, the Philippines, Vietnam, South Korea, Pakistan and India. Shell is also currently building two new blending plants in Asia, one in China and one in Indonesia.